The retailer signed a license agreement with IMG to expand the range in Gap, Banana Republic, and Janie and Jack stores.
In addition to the usual clothes and accessories, the company's stores will now start selling products such as bedding, home textiles, home decor, furniture, and children's accessories such as strollers and high chairs.
The new product strategy aims to introduce new product categories into the range, which will attract additional customers to the stores. It is also vital that products from new product groups are not so dependent on changes in the fashion world.
For Gap Inc., which for several years continues to give up its position on the fashion market, such a change of direction may become the basis for more excellent stability. The situation is so difficult for the company that the retailer has even stopped paying the rent and is actively closing its stores.
A subsidiary of Endeavor Holding, IMG is an event and talent management company in the world of sport and fashion. It is also actively involved in the licensing market. IMG, like Gap, is experiencing significant challenges due to the pandemic. The cooperation will allow the company to gain access to a broad audience of buyers of famous brands. And Gap, in turn, will be able to monetize the popularity of its brands and their worldwide recognition.
In addition to expanding its product range, Gap is also considering opportunities for new sales channels, in particular, products from new categories will be sold through its stores, online, through other retailers, and wholesale will also be involved.
Although Gap Inc. also manages the Old Navy, Athleta, Intermix, and Hill City brands, these brands have not been part of the license agreement. According to the company, the new strategy will first be tested in stores of the three selected brands.